ZTE Corporation (0763.HK / 000063.SZ), a major international provider of
telecommunications, enterprise and consumer technology solutions for the
Mobile Internet, today signed a global cooperation agreement with
Telefónica, one of the world largest operators. The partnership will
strengthen ZTE’s position as primary technological partner for
Telefónica.

This agreement aims to increase ZTE’s involvement in areas where it is
already working with Telefónica. Additionally, it aims to deepen the
partnership on next-generation network innovations such as the
development of ultra-high broadband via gigabit passive optical network
(GPON) technology, high-resilient, high capacity transports solutions
using photonic mesh networks, clearer and richer voice communications
with voice over long term evolution (VoLTE) services and microwave
transmission.

“Telefónica is constantly exploring new technologies that will provide a
best-in-class user experience for our customers,” Mr. José María
Álvarez-Pallete López said. “We see ZTE as one of our key technology
partners in helping us support the ever increasing communication needs
of the future. Partnering with ZTE will also support our vision of being
a smart, digital telco, primed to lead the digital transformation.”

“ZTE is delighted to work with Telefónica, the leader in network
innovation in Europe and Latin America,” said Mr. Lirong Shi. “We are
expecting unprecedented connection demands in the mobile information and
communication technology (M-ICT) era. We are committed to providing a
ubiquitous access, elastic network, and digital service telecom
operation and network evolution concept to help Telefónica realise its
network values and make key breakthroughs.”

About ZTE

ZTE is a provider of advanced telecommunications systems, mobile
devices, and enterprise technology solutions to consumers, carriers,
companies and public sector customers. As part of ZTE’s M-ICT strategy,
the company is committed to provide customers with integrated end-to-end
innovations to deliver excellence and value as the telecommunications
and information technology sectors converge. Listed in the stock
exchanges of Hong Kong and Shenzhen (H share stock code: 0763.HK / A
share stock code: 000063.SZ), ZTE’s products and services are sold to
over 500 operators in more than 160 countries. ZTE commits 10 per cent
of its annual revenue to research and development and has leadership
roles in international standard-setting organizations. ZTE is committed
to corporate social responsibility and is a member of the UN Global
Compact. For more information, please visit www.zte.com.cn.

About Telefónica

Telefónica is one of the largest telecommunications companies in the
world in terms of market capitalisation and number of customers. With
its best in class mobile, fixed and broadband networks, and innovative
portfolio of digital solutions, Telefónica is transforming itself into a
‘Digital Telco’, a company that will be even better placed to meet the
needs of its customers and capture new revenue growth.

The company has a significant presence in 21 countries and a customer
base of more than 316 million accesses around the world. Telefónica has
a strong presence in Spain, Europe and Latin America, where the company
focuses an important part of its growth strategy.

Telefónica is a 100% listed company, with more than 1.5 million direct
shareholders. Its share capital currently comprises 4.551.024.586
ordinary shares traded on the Spanish Stock Market and on those in
London, New York, Lima, and Buenos Aires.